CPP Certified Payroll Professional
APA<>(Questions With Answers)
Course Exam
\.Form SS-8 - Answer- Determination of Worker Status for Purposes of Federal Employment
Taxes and Income Tax Withholding
\.Form W-9 - Answer- First, it is used by third parties to collect identifying information to help
file information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the person who files the
information return for verification purposes.
The information on the Form W-9 and the payment made are reported on a Form 1099.
The second purpose is to help the payee avoid backup withholding. The payer must collect
withholding taxes on certain reportable payments for the IRS. However, if the payee certifies on
the W-9 they are not subject to backup withholding they generally receive the full payment due
them from the payer. This is similar to the withholding exemptions certifications found on Form
W-4 for employees.
\.Form SS-5 - Answer- Apply for an original Social Security card
Apply for a replacement Social Security card
Change or correct information on your Social Security number record
,\.Form SS-4 - Answer- Application for Employer Identification Number (EIN)
\.Accounting equation (Balance Sheet) - Answer- Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
\.Asset (Debit or Credit Normal Balance?) - Answer- Debit
\.Expense (Debit or Credit Normal Balance?) - Answer- Debit
\.Liability (Debit or Credit Normal Balance?) - Answer- Credit
\.Capital (Debit or Credit Normal Balance?) - Answer- Credit
\.Owners Equity (Debit or Credit Normal Balance?) - Answer- Credit
\.Revenue (Debit or Credit Normal Balance?) - Answer- Credit
\.Supportive Communication - Answer- Supportive communication is a style of
communicating that has a specific set of goals and techniques. The primary goal of supportive
communication is to resolve conflict or achieve change in a situation while preserving, even
strengthening, the relationship between the communicating individuals. This style of
communication is used in many types of interpersonal interactions, such as those including a
power differential, as is found between manager and employee, teacher and student, or parent
and child. It is also effective when used between those with more equal power, such as spouses,
business partners and friends. Learning these techniques can result in more effective
communication.
,\.Standard Payroll System Reports - Answer- Standard reports are already set up within the
payroll system and can be generated as required. These include reports on payroll audit, new
hires, terminations, compensation changes, benefit costs and vacation. The payroll system user
can define the parameters of the report such as limiting information to specific dates,
departments and categories.
\.Min Wage with Tips - Answer- The Fair Labor Standards Act (FLSA) requires payment of at
least the federal minimum wage to covered, nonexempt employees. An employer of a tipped
employee is only required to pay $2.13 an hour in direct wages if that amount plus the tips
received equals at least the federal minimum wage, the employee retains all tips and the
employee customarily and regularly receives more than $30 a month in tips. If an employee's
tips combined with the employer's direct wages of at least $2.13 an hour do not equal the
federal minimum hourly wage, the employer must make up the difference.
Some states have minimum wage laws specific to tipped employees. When an employee is
subject to both the federal and state wage laws, the employee is entitled to the provisions
which provides the greater benefits.
\.Escheat laws - Answer- Refer to unclaimed property obligations. Companies who issue
checks-for wages, payroll, employee commissions, returnable garnishments, deferred
compensation, payroll services or bonuseshave a potential (and probable) unclaimed property
obligation.
\.Schedule D (Form 941) - Answer- to explain certain discrepancies (caused by acquisitions,
statutory mergers, and consolidations) between Forms W-2, Wage and Tax Statement (Copy A),
and Forms 941, Employer's QUARTERLY Federal Tax Return, for the totals of social security
wages, Medicare wages and tips, social security tips, federal income tax withheld, and advance
earned income credit (EIC) payments
\.Workweek for 14 and 15-year-olds - Answer- Outside school hours, and on school days
including Fridays, no more than 3 hours.
No more than 8 hours on a non-school day.
, When school is in session, no more than 18 hours per week.
No more than 40 hours during a week when school is out.
Between the hours of 7 a.m. And 7 p.m, extended to 9 p.m. Between June 1 and Labor Day.
\.1) Which form is used for Determination of Employee Work Status for Purposes of Federal
Employment Taxes and Income Tax Withholding?
A. Form I-9
B. Form SS-4
C. Form SS-5
D. Form SS-8 - Answer- D
\.2) What amount must an independent contractor be paid for services rendered before an
employer is obligated to give them a 1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company's fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding $600 - Answer- C
\.3) Qualified real estate agents and direct sellers are which of the following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors - Answer- B
\.4) Under the common law test, the IRS examiners are to group the evidence they gather into
three general types or "categories" Which of the following is not one of them?
A. Behavioral control
APA<>(Questions With Answers)
Course Exam
\.Form SS-8 - Answer- Determination of Worker Status for Purposes of Federal Employment
Taxes and Income Tax Withholding
\.Form W-9 - Answer- First, it is used by third parties to collect identifying information to help
file information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the person who files the
information return for verification purposes.
The information on the Form W-9 and the payment made are reported on a Form 1099.
The second purpose is to help the payee avoid backup withholding. The payer must collect
withholding taxes on certain reportable payments for the IRS. However, if the payee certifies on
the W-9 they are not subject to backup withholding they generally receive the full payment due
them from the payer. This is similar to the withholding exemptions certifications found on Form
W-4 for employees.
\.Form SS-5 - Answer- Apply for an original Social Security card
Apply for a replacement Social Security card
Change or correct information on your Social Security number record
,\.Form SS-4 - Answer- Application for Employer Identification Number (EIN)
\.Accounting equation (Balance Sheet) - Answer- Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
\.Asset (Debit or Credit Normal Balance?) - Answer- Debit
\.Expense (Debit or Credit Normal Balance?) - Answer- Debit
\.Liability (Debit or Credit Normal Balance?) - Answer- Credit
\.Capital (Debit or Credit Normal Balance?) - Answer- Credit
\.Owners Equity (Debit or Credit Normal Balance?) - Answer- Credit
\.Revenue (Debit or Credit Normal Balance?) - Answer- Credit
\.Supportive Communication - Answer- Supportive communication is a style of
communicating that has a specific set of goals and techniques. The primary goal of supportive
communication is to resolve conflict or achieve change in a situation while preserving, even
strengthening, the relationship between the communicating individuals. This style of
communication is used in many types of interpersonal interactions, such as those including a
power differential, as is found between manager and employee, teacher and student, or parent
and child. It is also effective when used between those with more equal power, such as spouses,
business partners and friends. Learning these techniques can result in more effective
communication.
,\.Standard Payroll System Reports - Answer- Standard reports are already set up within the
payroll system and can be generated as required. These include reports on payroll audit, new
hires, terminations, compensation changes, benefit costs and vacation. The payroll system user
can define the parameters of the report such as limiting information to specific dates,
departments and categories.
\.Min Wage with Tips - Answer- The Fair Labor Standards Act (FLSA) requires payment of at
least the federal minimum wage to covered, nonexempt employees. An employer of a tipped
employee is only required to pay $2.13 an hour in direct wages if that amount plus the tips
received equals at least the federal minimum wage, the employee retains all tips and the
employee customarily and regularly receives more than $30 a month in tips. If an employee's
tips combined with the employer's direct wages of at least $2.13 an hour do not equal the
federal minimum hourly wage, the employer must make up the difference.
Some states have minimum wage laws specific to tipped employees. When an employee is
subject to both the federal and state wage laws, the employee is entitled to the provisions
which provides the greater benefits.
\.Escheat laws - Answer- Refer to unclaimed property obligations. Companies who issue
checks-for wages, payroll, employee commissions, returnable garnishments, deferred
compensation, payroll services or bonuseshave a potential (and probable) unclaimed property
obligation.
\.Schedule D (Form 941) - Answer- to explain certain discrepancies (caused by acquisitions,
statutory mergers, and consolidations) between Forms W-2, Wage and Tax Statement (Copy A),
and Forms 941, Employer's QUARTERLY Federal Tax Return, for the totals of social security
wages, Medicare wages and tips, social security tips, federal income tax withheld, and advance
earned income credit (EIC) payments
\.Workweek for 14 and 15-year-olds - Answer- Outside school hours, and on school days
including Fridays, no more than 3 hours.
No more than 8 hours on a non-school day.
, When school is in session, no more than 18 hours per week.
No more than 40 hours during a week when school is out.
Between the hours of 7 a.m. And 7 p.m, extended to 9 p.m. Between June 1 and Labor Day.
\.1) Which form is used for Determination of Employee Work Status for Purposes of Federal
Employment Taxes and Income Tax Withholding?
A. Form I-9
B. Form SS-4
C. Form SS-5
D. Form SS-8 - Answer- D
\.2) What amount must an independent contractor be paid for services rendered before an
employer is obligated to give them a 1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company's fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding $600 - Answer- C
\.3) Qualified real estate agents and direct sellers are which of the following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors - Answer- B
\.4) Under the common law test, the IRS examiners are to group the evidence they gather into
three general types or "categories" Which of the following is not one of them?
A. Behavioral control
